Friday, 24 November 2017

What’s next? – USDJPY 24.11.17

The dollar was trading 0.28 percent higher vs the Japanese yen at 111.51 as of 05:45 GMT, amid low trading volumes as no data from Asia is scheduled and as US markets return from a holiday but will close earlier than in the usual time.

The US dollar index, which measures the greenback against a basket of six major rivals, was trading at 93.09, 0.05 percent to the downside by the time of this writing.

Ahead in the day, the US manufacturing and services PMIs for Nov are up at 14:45 GMT.

The pair was able to recover some positions on Thursday as minutes from the Federal Reserve monetary policy encounter increased expectations for a rate hike next month.

According to Fed funds tracked by CME Group’s FedWatch tool, market participants are currently pricing in nearly a 100% probability of a rate hike by December.

The latest minutes from the Federal Open Market Committee exposed an unified front on economic growth prospects, but continued to outline different opinions over future monetary policy changes as inflation levels remain below the 2 percent target.

The US regulator also insisted that the timing of future rate hikes will be determined by incoming data, which opens the door to a slower normalization in 2018.